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Newsfile 25-Jan-2023 8:08 PM
Avaya Holdings Corp. (AVYA) Securities Fraud Class Action:
The litigation focuses on Avaya's repeated assurances that it has had effective internal controls over financial reporting ("ICFRs") and that it has made significant progress in its business model transformation to a cloud and SaaS business model.
According to the complaint, Defendants made misleading statements and failed to disclose that: (1) Avaya's ICFRs were deficient in several areas; (2) as a result of the deficiencies, the company failed to design and maintain effective controls over whistleblower policies and its ethics and compliance programs; and (3) the company's deteriorating financial condition was likely to raise substantial doubt about its ability to continue as a going concern.
Avaya's assurances came into serious question, beginning on July 28, 2022, when the company announced its board fired CEO James M. Chirico, Jr., revealed disastrous preliminary Q3 2022 financial results, and withdrew its 2022 guidance.
Then, on Aug. 9, 2022, Avaya announced that there is substantial doubt about its ability to continue as a going concern, it would not timely file its financial statements for the quarter ended June 30, 2022, its Audit Committee commenced internal investigations into circumstances surrounding the company's financial results for the quarter, and the Committee commenced an investigation into matters raised by a whistleblower.
Finally, on Nov. 30, 2022, Avaya announced it would not timely file its fiscal year financial statements, revealed that its internal investigation is continuing, and admitted that it did not appropriately log the whistleblower's email received by a member of its Board of Directors and did not convey its existence to management or to its outside auditor.
"We're focused on investors' losses and proving Avaya misled investors about its controls and progress of its business model transformation," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Avaya and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Avaya should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email AVYA@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/152491